As a consumer’s income bracket increases, the likelihood of drinking wine once per week also rises, according to a new survey by the Luxury Institute.

The “Premium Wine Luxury Brand Status Index (LBSI)” survey found that 90 percent of affluent consumers in the United States self-identify as wine drinkers, with 58 percent drinking wine at least once per week. How often an individual indulges in a glass of wine and how much they are willing to spend on bottles is directly linked to income, insights that may provide the oenology industry an understanding on how to best market to this demographic.

“Wine is experiential. Consumers are purchasing wine at higher volumes because they enjoy the restaurant and at-home dining experiences that include a great quality wine,” said Milton Pedraza, CEO of the Luxury Institute. “Consumers will continue to spend more on experiences rather than products. Not only will they consume more wine but they will consume wine of higher quality and at a higher price.

“Wine continues to be more popular than beer or spirits, and it is acquiring a greater share in the beverage market; this trend has been evolving over the years,” he said. “Women and millennials, in particular, are consuming at a much higher rate as their buying power and connoisseurship evolves.”

The Luxury Institute’s Premium Wine Luxury Brand Status Index surveyed consumers 21 and older from households with an income of at least $150,000 a year.

Wine or reasonFor the survey, affluent consumers were asked to evaluate 21 premium domestic wine brands based on the four pillars of brand value. Luxury Institute defines these pillars as superior quality, exclusivity, enhanced social status and an overall superior consumption experience.

The survey also asked participants to share which winemakers they feel are worth paying a premium price for, those they would recommend to friends and family and which wines they plan on purchasing next.

Luxury Institute found that of the 90 percent of affluents wine drinkers, 58 percent drink wine once a week, and 78 percent drink wine at least on a monthly basis. Affluent women are also more likely to be wine drinkers, with 61 percent drinking wine at least once a week compared to only 55 percent of men, who also tend to spend more on fine wine.

As consumers age, the frequency of weekly wine drinking also increases, notably after age 55, and peaks at 65 and older. Of this older demographic, 63 percent consume wine at least weekly.

Puiforcat Sommelier collection

Similarly with age, as income rises so does the likelihood of enjoying a glass of wine during the week. Luxury Institute found that 53 percent of respondents earning less than $200,000 drink wine weekly or more frequently, with the statistic rising to 67 percent for those earning $500,000 or more in annual income.

Understandably, the price a consumer is willing to pay for bottles of wine is dependent on their income demographic. Willingness to pay for higher priced bottles increases with income and surprisingly decreases with age.

Consumers earning less than $200,000 spend $24 on average, compared to an average of $41 per bottle for those with incomes of $500,000 or more. Additionally, consumers under the age of 45 years old spend $33 on average for fine wine, but those 65 and older purchase bottles at retail stores for $23.

These averages are also dependent on occasion, with consumers typically purchasing $28 at retail stores, $36 for a casual weekday dinner at a restaurant and $48 for weekend dining or during a special occasion of some sort.

Silversea Culinary Arts & Wine Voyages

In regard to purchasing wine at a restaurant, the survey found that seven out of eight affluent consumers do so. Twenty-eight percent do so at least once a week, with 62 percent of purchases being by the glass rather than the bottle.

The higher the income, the more likely it is that a consumer will opt for a bottle. Those with $500,000 or more in income are 63 percent more likely to buy wine by the bottle in a restaurant, spending on average $70 for special occasions and $55 for a weekday dinner.

This is much higher than the average of $48 per bottle for special occasions and $36 for weekday dining spent by affluent consumers.

It’s okay to wine a little
Recently, increased attention has been placed on the wine industry from luxury brands.

Four Seasons Hotels and Resorts, for example, is pursuing a different kind of California dreamer with its latest property.

Alongside Alcion Ventures and Bald Mountain Development, Four Seasons will open 85 guest rooms and 20 private residence villas in Napa Valley, CA in early 2018. Napa Valley’s allure to cultured luxurians makes it an obvious destination for the hotelier, which already has several California properties (see story).

Four Seasons’ Napa Valley, CA property

Also, Hermès-owned silver maker Puiforcat is paying homage to the ritual of wine tasting with the help of a duo of experts.

Together with sommelier Enrico Bernardo and designer Michael Anastassiades, the brand created a collection intended to bring a new experience to those who revel in the tasting or serving of the beverage. Working with external creatives helped Puiforcat go outside the expected, traditional wine glass (see story).

Winemakers should rely on experiential storytelling and outreach to pull consumers in their direction.

“Quality and experience matter tremendously,” Mr. Pedraza said. “Winemakers should use their winery and membership experiences to create a client experience that makes them feel special.

“Wine companies should also use the on-premise platform, restaurants, hotels, etc., and off-premise platform, wine and liquor stores, to deliver beyond the product and create an experience that is focused on a great quality product with a compelling story and an experience that creates a long-term relationship,” he said.

Last year, Steven Abt decided to overhaul the business model of Caskers, his five-employee craft-spirits company in Manhattan. He focused his marketing on two segments: the original customers who bought curated spirits on Caskers’ website, launched in 2012, and new, even more affluent buyers, who would receive one-on-one, concierge-style service.

A significant portion of his higher-end clientele was interested in such an approach. “It seemed like an opportunity to tap the luxury market, which is growing in general,” he said.

Five months later, the new offering generates about 2% of the firm’s annual revenue, which is just under $10 million, according to Mr. Abt. He expects that figure to increase to as much as 15%, with pretax margins of 20% to 30%, compared with 10% to 20% for the original service.

Mr. Abt is one of a growing number of small-business owners in New York City who are embarking on a two-tiered strategy in their marketing. That’s the result of a variety of factors: healthy demand for high-end goods and services, postrecession changes in the spending habits of affluent consumers, capabilities made possible by digital technology and the need to ramp up volume.

In some cases, it means branching out into a more upscale market, as Mr. Abt has done; in others, expanding from an affluent clientele to the mass market. Regardless, said Daniel Levine, a consumer-trends expert and director of the Manhattan-based Avant-Guide Institute, “these businesses are just following the money.”

Certainly, there’s a time-honored tradition in such sectors as fashion to bring a luxury brand to a mass audience. Take Lilly Pulitzer—known for its connection to Jacqueline Kennedy Onassis and the very rich—which recently began selling a line of clothing in Target stores.

But such a strategy can be a gamble. The premium brand that expands to a less-affluent market may dilute its cachet. Even trickier is going after a higher-end customer. Companies often are reluctant to admit to doing so, fearing they’ll alienate potential buyers in either market. And it can be difficult to convince more elite customers that their product or service is top of the line.

“It’s always harder to go upmarket,” said Milton Pedraza, CEO of the Luxury Institute, a consumer-trends research firm in Manhattan. He points to British-based Mulberry, a maker of high-end leather bags. It recently stumbled, with declines in profits, during an international expansion that included a flagship store in SoHo; it also increased prices to an ultraluxury level.

Many factors are contributing to the two-tier trend. For small businesses in New York pursuing wealthier customers, one of the most important is postrecession spending by upper-income households. From 2009 to 2012, the total growth in U.S. consumption, adjusted for inflation, happened mostly at the higher end, according to Steven Fazzari, an economist at Washington University in St. Louis.

Two ways to grow

Among those at the bottom 95% of income distribution, there was 2.8% growth during that time period, compared with a 16% increase among the top 5%. That trend has likely continued in recent years, according to Mr. Fazzari. “Growth in consumption has been exclusively driven by the top,” he said.

Companies have also been reacting to significant changes in the buying habits of affluent customers since the recession, according to Jim Taylor, a senior adviser at YouGov.com, a Waterbury, Conn., firm that conducts surveys aimed at better understanding public views about products and current affairs. He is the co-author of The New Elite: Inside the Minds of the Truly Wealthy.

He divides the affluent into two categories: those who seek “worth” and are willing to pay a premium for the things they buy, but go through a rigorous vetting and shopping process. Others are “discounters,” focused more on price. “They derive pride from squeezing their vendors,” he said.

Using technology platforms strategically has also helped some companies expand smoothly from a premium-only service to a larger market. Kofi Kankam co-founded Manhattan-based Admit Advantage seven years ago to provide advice to graduate-school and college applicants. He charges about $200 an hour, with packages running as high as $10,000.

About three months ago, the company launched Admit.me, an online platform that is more affordable to a wide audience. It allows applicants to interact with current students and alumni at schools where they are applying and for admissions offices to search for potential recruits. The basic service is free, but customers can pay about $10 a month for additional capabilities.

“We want to build a scalable business,” said Mr. Kankam, whose profitable, five-employee company has $2 million to $4 million in annual revenue.

The big benefit of expanding to a mass audience is increased volume—especially for small-business owners who have made their name providing time- and labor-intensive, hands-on service. Take Joey Healy, founder of a three-year-old company in Manhattan that bears his name. At Joey Healy Eyebrow Studio, which provides eyebrow-shaping services, Mr. Healy spends about an hour working with each client. He charges $135, up from $85 three years ago.

More recently, Mr. Healy formed a partnership with hair-removal specialist Spruce & Bond to train eight employees in his eyebrow-shaping techniques. They were placed at all four Spruce & Bond stores (three in Manhattan, one in Scarsdale). Called Browlab, the service at the stores costs clients $50; customers also can buy from Mr. Healy’s line of products. “It brings me a new audience,” he said.

Underwriting expansion

About 10% of Mr. Healy’s total revenue, which is “just under $1 million,” now comes from Browlab, but that should increase as Spruce & Bond expands to more locations in Manhattan. Also, in October, Mr. Healy plans to move from his 500-square-foot studio to a bigger space, which will serve as what he calls “more of a flagship” for the profitable company.

In some cases, small businesses regard their premium market as a way to underwrite expansion to a larger mass clientele. Four years ago, Kim Caspare, who has a doctorate degree in physical therapy, opened PHlex Health and Wellness Studio in Manhattan, where she treated patients who were able to pay out of pocket and were mostly referred by doctors.

Since then, she has added such services as acupuncture and meditation and expanded from 1,500 square feet to about 2,200, with plans to increase to 4,600. She recently started treating a new group of patients with insurance coverage, too. Her premium clients, who pay from $160 to $300 an hour for a variety of services, “subsidize everyone else,” said Ms. Caspare. Her profitable, nine-employee company has $1 million to $3 million in annual revenue.

For those adding a higher-end tier, the key is retooling the product or service to make it attractive—and worth the price—to a wealthier clientele. That generally means not moving too far upstream from the company’s original segment.

At Caskers, Mr. Abt had already sold pricey spirits, usually in the $40 to $60 per-bottle range, to affluent buyers. Although his concierge clients have paid as much as $27,000 for an order, “moving to the high end has been a natural extension of the business,” he said.

Another notable example is concierge medicine, through which doctors provide extra services to their patients, who pay an annual fee. About a year ago, Dr. Herbert Insel, a cardiologist and internist in Manhattan, introduced this option.

He charges a $2,500 annual fee to cover services, such as a lengthy physical exam not reimbursed by insurance, longer visits and a direct telephone number to the office. So far, 10% to 15% of patients have signed on. Many of them “are very busy executives in their 40s and 50s who are used to this type of approach,” said Dr. Insel. “They were champing at the bit.”

The store that introduced America to food processors and copper fish pans has returned to its Wine Country roots.

For many decades, Williams-Sonoma thrived by being one step ahead of its customers, selling them housewares they didn’t yet know they needed. But with this weekend’s opening of its newest venue, in Sonoma, the trendsetting company is looking back to celebrate its 99-year-old founder and recall its humble debut.

The project also reflects the Boomer-fueled brand’s efforts to woo a younger generation — Millennials, who aren’t exactly rushing to buy homes and stock kitchens.

This retro Williams-Sonoma, at the site of the original store, re-creates the look of the shop that Chuck Williams opened in 1956, down to the black-and-white checkerboard floor. “It’s going to be a total doppelganger,” said Wade Bentson, one of Williams’ first employees, who helped with its design.

With a 12-seat cooking school showcasing local talent, an edible garden, vintage merchandise and museum-style kitchenware exhibit, the store is opening in a town famously hostile to chains. But the billion-dollar retailer, for the most part, is being welcomed like a hometown hero.

“I’m totally excited about it,” said Sheana Davis, a community activist and proprietor of Epicurean Connection, a nearby cafe and cheese shop. “If you’re looking for opposition, I’m not it.”

Williams, who celebrated his 99th birthday this week, operated his store near the historic plaza for only two years before decamping to San Francisco. But his later success made Sonoma itself an international brand.

Visitors still inquire about the chain’s birthplace. “I’ve been introduced as his son several times,” said Steven Havlek, who owns Sign of the Bear, an independent kitchenware store on the plaza.

Re-creating the original

When the site at 605 Broadway became available in 2012, the retailer swooped in. The property included both Williams’ original 570-square-foot shop and an attached home and garden that he had shared with his mother.

“We found enough pictures and enough from (Williams) to rebuild the store exactly as it was,” said Janet Hayes, president of the Williams-Sonoma brand. The restoration includes original signage and the clean-lined open white shelving that became the stores’ trademark.

The new Sonoma store includes an exhibit of ingredients and tools that Williams popularized, such as Fini balsamic vinegar, Maldon sea salt, Le Creuset cookware and French mandolines. Williams’ restored home, attached to the store, has been repurposed as a design studio and showcase for Williams-Sonoma Home furnishings. The store is not all retro; the made-over garden boasts an outdoor kitchen with pizza oven and lots of merchandise from the company’s new Agrarian line, launched in 2012 in keeping with a younger generation’s fascination with urban farming.

The DIY cheese-making kits and high-end chicken coops that Williams-Sonoma is betting on today were definitely not in the mix when Williams began his retailing career. The society matrons who patronized Williams-Sonoma in the late 1950s were lured by the gleaming copper saucepans, Pillivuyt porcelain and fluted tart tins that Williams discovered in France. Jackie Kennedy and Julia Child were about to make French cuisine the epitome of chic, and Williams was poised to profit.

Cooking to entertaining

Urged by his affluent customers to move the shop to San Francisco, Williams listened when one of them suggested a spot near Elizabeth Arden, the high-end salon on Sutter Street. “In those days, women had beehive hair that required a lot of attention,” recalled Bentson, who began working for the store in 1961. “It wasn’t unusual for them to go to Arden’s two or three times a week, and they went right by our store.”

Women from Hillsborough, Piedmont and Marin would have their ball gowns shipped to Williams-Sonoma, drop their dogs off at the store, and then go and have their hair done, recalled Mary Risley, who founded Tante Marie’s Cooking School in San Francisco and is a longtime friend of Williams’. They bought Christmas presents and wedding gifts at Williams-Sonoma, especially after the merchant — again nudged by a customer — created a bridal registry to compete withGumps and Tiffany.

Child’s popular television show, which debuted in 1963, also fueled Williams-Sonoma’s sales. If Julia used it, “people beat the way to our store to get it,” Bentson said. San Francisco cooking teachers like Risley andJoyce Goldstein sent their students to the store for quiche pans, flan rings and souffle dishes — equipment that department stores of the day did not stock.

“Everybody was either taking cooking lessons or giving cooking lessons,” recalledJacqueline Mallorca, an early customer and ad agency employee who persuaded Williams that the store needed a mail-order catalog. Begun in 1972 and, for years, written by Mallorca, the innovative full-color mailer put Williams’ finds and favorite recipes within reach of all Americans.

Today, the recipes have migrated to the company’s website, and the catalog copy is far more clipped and concise. The September issue still includes Le Creuset and All-Cladcookware but also features packaged mixes for Bundt cakes, quick breads, waffles and breakfast bars — a shift noted unhappily by the culinary doyennes of San Francisco.

“There’s an awful lot of tableware,” sniffed Mallorca, an Englishwoman whose polished manners don’t conceal her dismay. “People today are not so interested in cooking as much as entertaining.”

Positioning for future

Goldstein, who later collaborated with Williams on several cookbooks, concurred. “At some point, Williams-Sonoma made the shift from being an educating store to being a lifestyle store, with tablecloths, napkins and pottery,” she said.

The publicly traded company’s other concepts — among them, Pottery Barn, Pottery Barn Kids and West Elm — are thriving, but the net revenue of the Williams-Sonoma brand has been stagnant in recent years and the store count is down. Branding experts and trend forecasters see both opportunities and challenges for the chain as it positions itself for the future.

Many affluent young consumers aren’t hurrying to buy homes, they say, and are more inclined to spend on experiences than on stuff.

“I’ve been invited to buy wedding gifts at experiential websites,” said Kara Nielsen, culinary director for Sterling-Rice Group, an advertising and branding agency in Boulder, Colo. Nielsen and others also point to a minimalist trend, a preference for smaller, less cluttered homes and simpler lives.

“A lot of Millennials believe in access but not ownership,” Nielsen said, pointing to the success of businesses that enable consumers to share cars or rent special-occasion clothes.

Building in diversity

Like other retailers, Williams-Sonoma needs to respond to changing demographics, marketing experts say. “Diversity has to be built into their product range and into their staff,” said Milton Pedraza, CEO of the Luxury Institute, a consultant to high-end brands. Pedraza points to his own multicultural family, which includes Colombians, a Jewish lawyer from Long Island and a Hindu doctor.

“We make samosas for Thanksgiving with turducken and Spanish rice,” he said. “And we’re not atypical.”

Marc Halperin, a food and beverage consultant with San Francisco’s Center for Culinary Development, believes the chain is still a tastemaker and sharp observer of trends. The Agrarian line dovetails neatly with the urban homesteading wave, Halperin said. And the shift toward offering tableware, juicers and other appliances that have little to do with cooking may also be wise.

“There’s clearly a huge understanding of the consumer,” Halperin said. “The number and variety of espresso machines they’re selling is mind-boggling.”

Cognac has become the latest casualty in China’s war on corruption, a nationwide crackdown that has squeezed the country’s once-plump luxury goods market.

Shipments of the French brandy to Asia, in particular China, have fallen sharply in the past year. Both the volume sold and the total value of shipments dropped around 20 per cent, according to French-based trade group National Interprofessional Bureau of Cognac (BNIC). The Chinese slowdown played a major part in an overall decline in global sales of cognac, with shipments down nearly 7 per cent in the past year and total value falling 10 per cent, the BNIC said. And that came after three years of record sales.

The decrease hasn’t been driven by a change in consumer tastes, but rather the Chinese government’s efforts to stamp out exorbitant spending by officials.

President Xi Jinping began clamping down last year on the spendthrift ways of the country’s government workers, from military officers to politicians and civil servants. The crusade has put the kibosh on giving flashy gifts such as high-priced cognac or leather goods from Louis Vuitton, which had commonly been offered by officials to sweeten deals.

The fallout has slashed the sales growth of many luxury goods to low-single digits, and China is expected to keep this “lacklustre” pace of growth for the rest of the year, according to a recent report from Claudia D’Arpizio, a partner at consulting firm Bain & Co.

Ms. D’Arpizio projects the luxury goods market in China will grow by 2 per cent to 4 per cent in 2014, which is in line with Europe and a slower rate than North and South America. It’s a major change from China’s 20-per-cent increase in market size between 2011 and 2012.

“The corruption crackdown is still reducing sales,” the report said, noting that the stricter regulations were especially impacting gifting.

It’s a tightening spigot that one of the world’s largest luxury companies has seen first-hand. In its most recent quarterly results, Paris-based LVMH Moet Hennessy Louis Vuitton SA, maker of Hennessy-branded cognac, cited heavy destocking of French brandy in China. The company attributed this to “anti-extravaganza measures” – a term used to describe the Chinese government’s limitations on extravagant spending. The company’s Louis Vuitton fashion line also saw softer sales in China in the quarter.

The financial results of other cognac-selling companies, such as Rémy Cointreau SA and Pernod Ricard SA, have also shown the Chinese market is a challenge. Fashion house Prada Group, and luxury giant Compagnie Financière Richemont SA, owner of Montblanc, Cartier and Van Cleef & Arpels SA brands, have also been showing similar signs of strain in China.

“This famous gifting issue has impacted our business in China especially for most of our brands, because most of our brands were the most regarded and offered as a gift,” Richard Lepeu, co-CEO of Richemont, said on a recent earnings call.

It wasn’t long ago that China was seen as the future for luxury goods, as incomes there rose while Western shoppers pulled back because of the recession.

But now the region has cooled off and the world’s luxury market is entering a more mature phase. Retailers are reshaping their strategies in China from lengthening store hours to offering discounts in order to entice more customers to spend as growth slows down.

Some luxury producers are navigating the headwinds better than others. Burberry Group PLC’s past quarterly results showed double-digit sales growth in mainland China and Hong Kong. The company’s chief financial officer, Carol Fairweather, attributed this in part to targeting younger consumers and connecting with them digitally. The retailer is still betting on Asia to help drive growth and opened its first flagship store in Shanghai earlier this year.

Even more important than these strategic changes will be maintaining a reputation for quality. “Consumers are so much more discerning now in China,” said Milton Pedraza, chief executive officer of research and consulting firm Luxury Institute LLC. Brands such as Hermès, Bottega Veneta, Chanel and top-tier liquors are standing out with the Chinese consumers because they are truly unique and exclusive.

Tariffs and other charges often make luxury goods more expensive in China than abroad, leading many Chinese to buy their leather goods and other luxe products on trips. This is one area Canada benefits, as wealthy tourists flock to Toronto and Vancouver to shop, Bain’s report notes.

Unless a housing bubble or debt crisis threaten the Chinese economy, luxury brands may have seen the worst of the slowdown.

“I think by the end of the year we’ll be in a different mode. I think the government will have flexed its muscles, it will have made its point,” Mr. Pedraza said. “There’s a lot of pent-up demand out there.”

The government could risk encouraging a larger black market for goods if its purchasing limitations go on too long or become too stringent, he added.

And industry heavyweights such as LVMH are also betting the government sanctions will ease up in the future. The company is building out its cognac-production capacity in anticipation of future growth. “This will help the brands be in a good position when the destocking in China subsides, although this is expected to continue through the second half of the year,” said Chris Hollis, director of financial communication, on a conference call.

(NEW YORK) January 9, 2014 – After ringing in another new year, the premium spirits industry is looking forward to a robust 2014. To determine which brands carry the most prestige, the New York-based Luxury Institute conducted its 2014 Luxury Brands Status Index (LBSI) survey to gather opinions of eight high-end champagne brands and 29 liquor brands from four categories. Respondents age 21 and older have an average income of $282,000 and net worth of $3 million. Brands rated include:

The LBSI is calculated by averaging each brand’s scores on five separate components of status that relate to premium spirits: quality, taste, packaging, worthiness of a premium price, and appropriateness as a gift. Respondents also reveal total spending on high-end spirits, as well as personal history with particular brands and the brand that they will most likely buy next.

“Brand status is the key to achieving sustainable growth, especially in saturated categories,” says Luxury Institute CEO Milton Pedraza. “Listening directly to the voice of the wealthy consumer will help champagne and liquor brands stand out on the shelves.”

Patron outranked its competitors in tequila and Balvenie took the lead in premium scotch. To find out more about the rankings within each category, contact us with any questions or for additional information.

About the Luxury Institute (www.luxuryinstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers globally about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Customer Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

NEW YORK (CNNMoney) — The improving economy isn’t going to spur a mad dash to luxury stores among the U.S.’s wealthiest shoppers, a new survey shows.

Wealthy consumers are expected to cut back on spending on non-essential items during the second half of the year; seeking products and experiences that hold more value instead, according to a survey released Wednesday by the Luxury Institute.

Of the more than 500 “pentamillionaires” — those with a net worth of $5 million or more — surveyed, more than 80% say luxury goods, such as jewelry, watches, and handbags, have declined in significance.

“Even among the wealthiest customers, luxury goods and services are considered less important in today’s economy,” said Luxury Institute CEO Milton Pedraza in a statement.

Wealthy shoppers will refrain from scooping up expensive handbags, shoes and other discretionary items even as the economy recovers and the stock market soars, a study found.

In the second half of 2013, the rich will rein in their spending on material things and seek out experiences that may garner more satisfaction, according to a Luxury Institute survey.

“People are less interested in watches and more interested in building lasting memories,” said Milton Pedraza, chief executive of the Luxury Institute. “Even among the wealthiest customers, luxury goods and services are considered less important in today’s economy.”

(NEW YORK) June 8, 2011 – High net-worth consumers 35 years of age and younger define luxury brands much more in terms of loyalty programs and unique offers than do their older wealthy cohorts, according to “Luxury Brand Marketing to Wealthy Millennials,” a new survey by the independent and objective New York City-based Luxury Institute. “Generation Y” individuals born in 1975 and later are also much more likely to have made a luxury purchase in the past year than 35+ wealthy consumers (83% vs. 66%).

Apple, cited without prompting by 45% of wealthy millennials as a luxury brand, tops all other brands, followed by Rolex, Coach and BMW, each offered by 30% of respondents as examples of luxury brands. Just 5.2% cited the iconic Dom Pérignon as a top-of-mind luxury brand, compared to 12% for those older than 35. In spirits, the most popular brand is the relatively young Grey Goose vodka.

“Wealthy millennials view luxury much more for the experiential factors associated with it, rather than relying on brand heritage or residual prestige earned long ago,” says Milton Pedraza, CEO of the Luxury Institute. “The good news for luxury firms is that these tech savvy shoppers want to interact with them, not only in stores but also online and on mobile devices. This builds richer experiences and deeper relationships.”

For greater details on brand perceptions, awareness and what matters most to wealthy millennials in each of 16 luxury categories, please contact Martin Swanson, VP of Luxury Institute.

The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

NEW YORK (CNNMoney) — When it comes to cutting back, the rich are learning a little secret the rest of us have always known: fast-food is cheap and good (if not good for you).

Quick service restaurants, such as McDonald’s and Subway, saw a bigger rise in spending by ultra-affluent consumers than any other restaurant type last year, according to the most recent data by American Express Business Insights.

Lori and Santiago Riviere are among those that have recently been turned on to fast-food dining.

They call themselves “dinks” — as in dual income no kids. She’s an attorney, he works in finance and together they make “well over six figures.” Still, she says the recession has changed her mindset about spending.

“Dining out on a daily basis was completely normal for us,” she says. “Now we eat in or get some form of take out of less expensive food.”

Their economical dinner of choice: Chipotle or Baja Fresh.

“Instead of going to a restaurant and coming out with a $75 bill you come out with a $25 bill,” said Riviere. “Tipping comes into consideration, too.”

Riviere says they order take out most evenings instead of dining out in order to save some extra money for luxury goods.

“I think it’s a sacrifice, but when you have to choose between that and a pair of Jimmy Choos, I’m going to choose the Jimmy Choos.”

In the aftermath of the Great Recession, even the wealthiest Americans are making similar trade offs to curb spending.

In the fourth quarter of 2010, spending on fast food increased 4% among American Express’ most affluent customers, or the top 10% of spenders, the AmEx data said. Meanwhile, spending on casual dining decreased by 4%.

“As the economy continues to recover, affluent consumers are showing restraint in spending in some areas, but not others,” explained Ed Jay, senior vice president of American Express Business Insights.

Jay says that affluent consumers exhibited a “return to value” during the recession and are still demonstrating frugal behaviors where possible, like spending more at fast-food restaurants.

“As wealthy consumers scaled back on consumption overall they started to go to more value or price oriented restaurants, and frankly chains,” added Milton Pedraza, the CEO of the Luxury Institute, which tracks spending among wealthy consumers with a minimum annual income of $150,000.

“No one will do without their iPhone or iPad, and very few people want to forgo travel, but there are other categories that are not priorities,” he said. Particularly when it comes to dining, “people have been making trade offs.”

Meanwhile, popular economical chains like McDonald’s are lovin’ it.

Danya Proud, a spokeswoman for McDonald’s says the company credits its recent growth in part to the addition of McCafe beverages, which include cappuccino, mocha and latté drinks clearly geared toward a more refined palette.